Haqq Network, known for its Islamic Coin (ISLM) cryptocurrency, is launching a new Shariah compliant investment product in July 2024 – to be offered via decentralized exchanges and the Haqq Wallet, which has a reach of over two million users.
Based on blockchain technology, this Deenar Gold token (DEEN) is backed 1:1 by one gram of gold. Co-Founder and CEO Alex Malkov shared with IFN Investor this real-world gold-backing makes DEEN a crisis-proof investment as it has a tangible asset that differentiates it from other stablecoins.
Explaining the gold backing DEEN is stored in secure vaults in Dubai, Alex said subscribers can request redemption of these tokens for physical gold at any time. “This process ensures that the token supply can be adjusted based on community demand, with tokens being minted and burned accordingly.”
The redemption logistics are still being negotiated for partnerships with secure vault operators and gold distributors to facilitate the physical delivery of gold to token holders. Oversight is managed by self-regulatory organization VQF, under the auspices of the Swiss Financial Market Supervisory Authority.
An initial supply of 12,000 tokens is on offer to allow Haqq Network to test market demand and validate the product-market fit before scaling up. “This cautious approach helps manage risks associated with over-supply and market saturation.”
This prudence comes after a major public backlash against Haqq Network from October 2023 when the much-delayed listing of ISLM on Gate.io got scrapped after a probe alert was issued by Dubai’s Virtual Assets Regulatory Authority.
With that probe since resolved, ISLM has gone on to be listed widely – including on KuCoin, Bitget, LBank, MEXC, XT.com, OSMOSIS, Onramp and Hotscoin.
On the regulatory front, the Indonesian Ulema Council (Majelis Ulama Indonesia) recently extended the existing Fatwa on ISLM – opening doors for its investment offering in this Southeast Asian market’s Muslim population of over 240 million.
ISLM also received endorsement from the Kenya Fatwa Council – providing potential for this token to tap into the critical hub for trade, finance, and technology in East Africa that has been dubbed ‘Silicon Savannah’.
